SSNIT recovers ¢ 310 billion from beneficiaries

10/24/07

Page 48

Story: Emmanuel Bonney
THE Social Security and National Insurance Trust (SSNIT) has recovered ¢310 billion, being moneys owed to it by students who have completed their studies.
This leaves a balance of ¢578 billion to be paid. Those who have benefited from the loan scheme and are still pursuing their studies are to pay ¢792 billion.
The Head of the Public Affairs Unit of SSNIT, Mr Kwaku Osei-Bimpong, who disclosed this in an interview, noted that there had been an aggressive recovery since 2004, explaining that ¢27 billion was recovered in 2003, ¢83 billion in 2004, ¢55 billion in 2005 and ¢59 billion in 2006.
He said that ¢61 billion was recovered between 1989 and 2003 while ¢237 billion was recovered from 2004 to the first half of this year.
According to him, from January to June 2007, the Trust recovered ¢40 billion, adding that ¢138 billion was through cash payment, ¢142 billion through social security contributions and ¢17 billion through benefits.
Mr Osei-Bimpong said some students residing outside the country, especially London, were paying through the recovery system SSNIT had arranged with Ghana International Bank in London.
“In view of the aggressive repayment by people who have completed school, the use of guarantors’ benefits have reduced considerably to less than five per cent,” he emphasised.
He urged beneficiaries of the SSNIT loan who had finished their studies to “pay off in good time to avoid building up higher balances”, saying that “we encourage people to pay in instalments”.
Quoting a section of the Students Loans Scheme Law of 1992, PNDCL 276, Mr Osei-Bimpong said “the social security contribution made to the Trust on behalf of the registered borrower shall be applied to repay the loan unless the loan is otherwise repaid”.
The repayment of the loan, according to the law, shall be by monthly deductions.
The Students Loans Scheme which was being operated by SSNIT to help students defray personal expenses, including the cost of boarding, lodging, books and equipment, among other things, had now been replaced by the Students’ Loan Trust Fund set up in December 2005 under the Trustees Incorporation Act, Act 106 of 1962.
The objective of the Trust Fund is to provide financial resources and the sound management of the trust for the benefit of students as well as to help promote and facilitate the national ideals.